This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.

Global Hedge Fund Assets Soar

Hedge-fund assets increased by 17 percent last year, reaching a record US$2.63 trillion, according to Hedge Fund Research Inc. (HFR).

Global assets rose by $376 billion, including $63.7 billion in net inflows from investors and $312 billion in investment gains, the Chicago-based data provider said in a report today. The fourth quarter was the sixth in a row that the industry saw a growth in assets, it said.

Event-driven funds had an average return of 12 percent in 2013 compared with a 9.2 percent gain for all hedge funds, HFR said. The category is “likely to continue to see strong flows” through at least the first half of 2014, HFR President Ken Heinz said at a press briefing in London today.

Long-short equity managers, who take bets on both rising and falling stocks, and global macro managers should see more favorable conditions this year, Heinz said. Macro strategies invest in stocks, bonds, currencies, and other instruments based on expected trends in global markets, and many were hampered in recent years by central banks’ debt repurchases, known as quantitative easing.

“I think we’re coming out of a very abnormal period in the financial markets,” Heinz said.

Copyright 2015 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Treasury & Risk

Treasury & Risk is an online publication and robust website designed to meet the information needs of finance, treasury, and risk management professionals. Our editorial content, delivered through multiple interactive channels, mixes strategic insights from thought leaders with in-depth analysis of best practices, original research projects, and case studies with corporate innovators.